Loulis Mills Sustainability Report 2014

2014Sustainability Report

2

Our CorporateResponsibility

Οur people Community

Εducation of new

generation

Support of vocational

training colleges

Support of sensitive

socialgroups

LOULIS MILLS SUSTAINABILITY REPORT 2014

3

Environmentalpolicies

and investments

Environment Market

Oursuppliers

Ourpartners

LOULIS MILLSSUSTAINABILITY REPORT 2014

4


Contents

6-7MESSAGE FROM THE CHAIRMAN AND CSR MANAGER

8THE COMPANY, THE HISTORY AND THE SOCIAL RESPONSIBILITYCompany History 8Vision, Mission, Values 12Company Plants 15Products and Services 21Financial Figures 24Stakeholders 24Corporate governance 26Participate actively 27Materiality assessment 28

30 ABOUT THE REPORTObjective Scope and reporting period (G4-17, G4-22, G4-23) Implementation of the Global Reporting Initiative (GRI) Communication about the report

32HUMAN RESOURCES - OUR PEOPLE ARE THE HEART OF THE COMPANY Recruitments 34Employee benefits 35Medical Care 36Employee health and safety 37Improvement of the Working Environment 38Management–Employee Relations 38Employee Development and Training 39Corporate Events 41

5


42COMMUNITYLoulis Museum,‘From Wheat to Bread’ 44Local communities and initiatives 50

54ENVIRONMENT Installation of Sound Silencers 56Electricity and Polluting Emissions 57Waste management 58Cooperation with CHEP in pallet handling 59Environmental protection - improvement projects 60

62MARKET Supply chain 63Procurement practices 64Contractual Agriculture Programme 64Consumer health and safety 65Food safety policy 66The quality control process 66Experimental bakery 67Product Labelling 68Responsible Packaging 68Developing new innovative products 69Baking seminars 70Love to bake 72Time for Easter festive bread-decorations 73Loulis Mills and Al Dahra Strategic Alliance 73

74FUTURE GOALS

76ANNEXMaterial aspect boundaries and limitations GRI Matrix “In accordance - Core”

Dear readers,

Our mill has been an integral part of Greek society for the past 230 years. I remember growing up listening to my father Kostas N. Loulis tell stories of our family’s contributions to society.

Stories of the donations made by Ioannis Loulis for construction of the Plaka bridge in 1866 and the Konitsa bridge in 1870, and of the creation of the Loulis Endowment in Ioannina in 1882. And also the story of Kostas Th. Loulis donating what little flour stocks the mill had to its personnel, upon hearing that the occupation of Volos by the Nazis in April 1941 was just a matter of hours.

Stories like these, forged in me, from early on in life, a very strong belief of what the true essence of the company was; not merely a part of society, but a force making a positive and long-term contribution to it.

This is the type of social action that we actively pursue to date, and there came a point where we wanted to integrate it within a more structured and targeted environment. Thus, near the end

of 2013, we created the Social Responsibility Department under the capable leadership of my mother, Olga Manou. Within just one year, the ensuing results have been excellent, given that we managed to apply our strategy and vision and implement structured actions to address specific social and environmental problems.

Since we are very proud of and we love our work, our objective was to impart this love. So, we decided to publish an annual social report that will enable us to share our actions with the people around us.

I hope that this Corporate Responsibility report will help make our employees, partners and customers feel a little more proud, and will act as an example for other Greek family-operated companies to follow and surpass us in their social work.

Our objective is that all of us - companies, citizens, bodies and the State - contribute more and more so as to create a better society and a healthier environment.

Wishing all of us a better tomorrowNikos Loulis

Message from the Chairman

6


7

Dear partners,

In preparing this first Corporate Responsibility report for Loulis Mills, we had the opportunity to look at the past, record the present and commit for the future.

We assessed the extent to which our growth is responsible, with value creation for society, while revisiting our strategy and renewing our commitments. Our objective was to secure our progress while supporting the market and our people, contributing to society and protecting the environment.

Our presence during the past 230 years as an active member of society and the economy, has greatly dictated the strategy which guides us to realise our vision.

Our fundamental principle is to always lead the market while making sure that we constantly create value for our customers, thus doing them justice for their support all these years, thanks to which our company stands at the top of the Greek flour industry.

In this first endeavour to officially record our company’s strategy and actions on corporate responsibility

issues, you will find that, despite the extremely unfavourable economic and social environment, we successfully managed to enter into our 3rd century of growth. We stood on very solid foundations while keeping our focus on the commitments we have undertaken, always with a sense of our responsibility.

One of our most significant works, with long - lasting commitment and contribution to both education and the spread of our cultural heritage, has been the creation and operation of the Loulis Museum - From Wheat to Bread.

This report also records all our activity and actions implemented, aimed at protecting and training of employees, supporting society in times of hardship, boosting the market and protecting the environment.

Aiming at our vision for growth, our faith in creative values and the respect for our principles and tradition, we carry on along the lines of the commitments undertaken.

Olga Manou

Message fromthe CSR Manager


8

The company, the history and the social responsibility

1782 1928 1975

1912 1951

Zois Loulis builds a small stone-mill in Aetorachi, Ioannina. During the retreat of the Turks in 1912, all the fortune of the Loulis family is destroyed and the mill burnt to the ground.

After another destructive fire, the mill is rebuilt with state of the art equipment, increasing capacity to to 100 tons /24h.

Konstantinos Loulis assumes leadership of the Loulis Mills Company, becoming the sixth generation his family to run the business.

Four of Zoes Loulis’ great grandchildren decide to relocate to the city of Volos, where they acquire a local mill. By 1917 it becomes the largest mill in central Greece.

“LOULIS MILLS” becomes the 28th company to be listed on the Athens Stock Exchange.

9

Company history and corporate development milestones


1999 2010

1975

12.0

00 to

ns

2014

GRAIN PROCESSED

1999-2007

1978 2001 2013

Loulis Mills acquires a controlling stake in its main competitor, “St. George Mills,” which is based in Piraeus and also listed on the Athens Stock Exchange. The new group immediately becomes the largest milling company in the Balkans.

Nikos Loulis becomes the seventh generation οf the Loulis family to lead Loulis Mills.

Loulis Mills expands into the

Balkans with 7 mills in 4 countries (Albania, Romania,

Bulgaria and Greece). In 2007,

the company decides to sell its

stake in the foreign mills to focus on the

Greek market.

A new state of the art mill is built in the industrial area of Volos, implementing state-of-the-art technology, increasing the wheat milling capacity to 700 tons/24h.

Construction is completed on a brand new mill in Sourpi, near Volos. The new mill has a production capacity of 1,000 tons/24h, as well as a private port.

The Loulis Museum started to operate.

Development of a strategic alliance with Al Dahra Agriculture, laying a very solid base for further development in developing markets of the Middle East and Asia.

220.

000

tons

10

230 years of tradition& social contribution

1807-1882 Ιoannis Zoi Loulis

Lamprini - Themis Louli

GRAND BENEFACTOR OF EPIRUS

1850-1923

During his lifetime he made many donations and contributedto the completion of many social projects in Epirus. Upon his death, the Loulis Endowment, which Ioannis Loulis founded, was activated to continue his work. The Loulis Endowment located in Ioannina, nowadays, is active and contributes successfully in the local area.

Plaka Bridge - 1866 Konitsa Bridge - 1870 Endowment - 1882

1910-1913 A founding member of the «Ipirotiko Komitato» movement (Epirus Liberation Committee), founded to guide and finance the liberation efforts of Epirus Greeks against the Turks, and to coordinate the movements of rebel forces.She dedicated a large part of her estate to this cause. Meanwhile, because of her integrity of character and rectitude, many people would reach out to her to resolve various civil disputes.


11

1874-1935 1986Christos Th. Loulis Nikos Loulis

Kostas Loulis1955

1922-1930President of the refugee reinstatement committee. The Nea Ionia refugee settlement in Volos was created with the

construction of 1276 residences.1935 «Christos Loulis» Endowment created in memory of his wife Katina Pantou, for the purpose of creating dowries for indigent girls from Zagora in Pelion and Aetorachi in Ioannina.

2013Loulis Museum, ‘From Wheat to Bread’

1986 Donation of €1,000,000 for completion of the Church in St. Gallen, Switzerland. 1989-1991 Unpaid civilian governorof the Mount Athos.1990 - 2005 Total donation of€1,000,000 to support and preserv the cultural heritage of the treasuresof Mount Athos.


12

VisionMissionValues

OUR VISION

Having reached the top of the flour industry, our goal is to continue being pioneers in the field of flours and providing the market with high and consistent quality flours, thus meeting all the needs of contemporary professional bakers and of the Greek household, while respecting our values, tradition and the environment.

OUR MISSION

To develop our business, through investment and innovation, in order to be able to ensure the high quality of our products, excellent customer service and the creation of value for our people, our associates, our shareholders and society.

OUR COMMITMENT

To preserve tradition, with love for flour, with devotion to society and with a view to achieving sustainable development, based, with respect and responsibility, on our family values, our people, our associates and our customers.

OUR VALUES

QualityFor our product and its production process

Our highly trained personnel ensures consistency in the quality of production and also focuses on developing new innovative products that meet the ever-increasing needs of the contemporary bakers and the modern food industry, thus making them competitive in the market. At the same time, we continuously supplement the broad family of our consumer products with new innovative ones to meet the nutritional needs of households but also to yield the optimal result in terms of quality that will satisfy even the most demanding consumer. Our distribution centres have all the required operating certificates (HACCP and ISO) and meet the strictest standards for storage and handling of products. From receipt of the raw material to the final placing of the products on the market, we carry out repeated checks so as to ensure their high quality.


13

LoveFor our product; for our employees; for the environment

The flours produced come from the best quality varieties of cereals, so as to create flour with the finest quality and nutritional characteristics, while stress is also laid on creating products with added nutritional value for the consumer, such as organic products and products from emmer wheat. Continuous and thorough checking is the key factor that contributes to our products having a high and consistent quality, as well as high water absorbency. We love our people, our family, and we provide for their continuous development.We were among the first Mills in Greece, in the ‘70s, to apply dry wheat cleaning, thus reducing water consumption during grinding to a minimum. Moreover, we have zero waste of any form whatsoever.

ServiceFor our customers; for consumers

Our customers are always at the centre of all our actions.The highly specialised staff members of our sales department are at the customers’ disposal in order to serve them immediately through a finely organised network. Our technicians visit the company’s customers on a daily basis, in order to provide technical support, consultancy on new products and on the latest developments in the field of baking, as well as to present new products. The service is offered free of charge to our commercial customers.

RespectFor tradition; for the community; for the individual; for the customer

We have renovated and reopened one of the most historic mills in Athens, which originally started operating in 1929; a factory constituting a local landmark for the suburb of Keratsini that has played an important role, not only in the economic life of the country, but also in the overall social life and history of Piraeus. To honour our history, in 2012 we decided to house, a model museum themed on the «Wheat-Flour-Bread» chain at our facility in Keratsini. We try to ensure that each of our employees feels part of a whole with a common objective, which is governed by team spirit and constantly promotes the sense of co-operation. For this purpose, particular emphasis is being placed on the respect for one another, on mutual trust and on the uniqueness of every employee.


14

DevelopmentInvestment and meeting needs

In addition to the continuous improvement of our flours and services, our focus is on developing new, innovative products. Over the last 35 years, for instance, Loulis Mills has developed 120 different final products, which corresponds to approximately 4 new products per year. Over the 6-year period 2007-2012 we have realised large investment projects worth a total of over € 25,000,000, creating the conditions for a sound and optimistic outlook, while, in 2012, and despite the heavy recession in Greek economy, we managed to conclude a major investment of € 10,000,000 in Keratsini , Attica, using own funds.

ImprovementInnovation and meeting needs

Since 1990, we have developed the Product Research and Development department, staffed by experienced food technicians, who, together with the baking technicians, are continuously improving the products already being produced by extending our range of flours. The department is constantly experimenting on various flour recipes, combining cereals with different quality characteristics, in order to always obtain the best possible result.At the same time, with the aim of improving our operations, we carry out regular internal checks and we train our personnel on a continuous basis.


15

Company Plants

Today, our company operates in Greece with two state of the art production plants in Sourpi, Magnesia, and Keratsini, Attica, and is currently holding the leading position in the Greek flour industry in terms of milling, sales and technology.

1.300 tons / 24housmilling capacity

2 industrial plants

120 differentfinal products

The state of the art technology employed in our two mills enables us to provide our customers with over 120 varieties of flour, thus ensuring the widest product range, which is ideal for meeting even the most complex needs of both professional and home bakers.



SOURPI PLANT

The new Loulis Mills industrial plant was launched in July 2001, in the area of Sourpi, Magnesia. The full operation of the new, state of the art, harbour-side mill has marked the completion of a pilot investment of 60 million Euros. Covering an area of 100,000 m2, the facility comprises:

4 production lines with a total milling capacity of 1,000 tons/24 hours

A Pilot Organic Mill with a production capacity of 40 tons/24 hours

bio

A Rye Mill with a production capacity of 25 tons/24 hours

Grain silos with a storage capacity of 55,000 tons

Flour silos with astorage capacity of5,000 tons

Level warehouses with a storage capacity of 3,000 tons

A privately owned port with a loading/unloadingcapacity of 300 tons/hour

A state of the art quality control department and an experimental bakery

8 packaging machines with a production capacity of 12 tons/hour for half, one, two, three and five kilogram flour bags as well as vacuum packed semolina.

A traditional Stone Mill with a production capacity of 20 tons/24 hours

flour flour



KERATSINI PLANT

In 1928, the foundations were laid, at the bay of Agios Georgios, in Keratsini, Piraeus, of the largest mill in the Greek territory, equipped with the most highly advanced technology of that time. In 2012, after a major, 2-year-long renovation, it reopens as a new, ultra-modern flour mill, one of the most advanced in Europe.

The purpose of this plant is the production of flours for bulk handling, in order to ensure the direct and cost-effective serving of the food industries and small businesses in Attica. This facility comprises:

Grain silos with a storage capacity of 20,000 tons

Bran silos with a storage capacity of 600 tons

Floursilos with a storage capacity of 3,500 tons

A privately owned port with a loading/unloading capacity of 150 tons/hourA state of the

art quality control department and experimental bakery

A milling line with a capacity of 300 tons/24 hours


20

At the premises in Keratsini, we have set up and operate the Loulis Museum, ‘From wheat to bread’, as well an ultra-modern and fully equipped, 90-seat bakery exhibition room, where the non-profit Hellenic Baking School is soon to be housed, the operation of which is among our immediate plans.

The excellent and consistent quality of our products is ensured by means of a finely equipped quality control department and our model bakery for the final checking. All stages of production are subject to detailed monitoring, under stringent hygiene rules. Our highly trained personnel, comprised of millers, experienced food technicians and bakers, ensures consistency in the quality of production. At the same time, the R&D department focuses on developing new innovative products that meet the ever-increasing needs of contemporary bakers.

Moreover, our company has the finest and biggest distribution network across Greece, with a large fleet of lorries and silo carriers, as well as a multitude of cooperating hauliers, serving our customers from Evros in the North down to Crete in the South. Distribution is carried out both from the two mills and from our privately owned warehouses-distribution centres in Athens, Thessaloniki and Kavala. The highly specialised staff members of our sales department are at our customers’ disposal in order to serve them immediately through a finely organised network. Today, the company employs 228 people and is constantly investing in new technological resources and in upgrading its facilities in order to always remain competitive and at the top of the Greek flour industry.


21

Products and ServicesLoulis Mills’ scope of business is focused exclusively on the production and trade of flours from ground wheat as well as from rye, corn and barley. Making use of the latest state of the art technology and constantly monitoring the market’s needs, Loulis Mills produces 120 types of flours-semolina flours to serve its 5,000 customers, bakeries, sweetshops, food industries and small businesses, as well as thousands of households, with a finely organised sales network across the country. Moreover, our company exports to 9 countries (Egypt, Cyprus, Albania, Bulgaria, Russia, USA, UAE, FYROM and Turkey).

MILLING PRODUCTS: LOULIS MILLS For Professional use (flour in sacks and bulk flour)

By-products (bran, bran pellets)

CONSUMER PRODUCTS: ST. GEORGE MILLSLong Life ή FMCG - Fast Moving Consumer Goods(flour in bags)

THE GROUP’S PRODUCTS ARE DIVIDED INTO:


from generation to generationthe same flour

healthyliving

Flour from softwheat

www.loulismills.gr

ROBU

ST

ROBUSTBakingflour

22


DISTRIBUTION CHANNELS

BakersSmall

businesses

PRODUCTS FOR

PROFESSIONAL USE

PRODUCTS FOR CONSUMER

USE

Special associates/ traders Public

bodies

FoodIndustries

Exports

Special associates /traders

Retail trade (Super Markets,

Mini Markets, small traditional shops)

BY PRODUCTS

Traders

Livestock farmers

Animal feedIndustries

23


SERVICESSales Network

The sales department, perfectly staffed and organised, is at the customers’ disposal in order to serve them immediately, both in terms of order-taking and of consultancy on selecting the appropriate flours to meet their needs. Technical Advisers

Loulis Mills’ bakery technical advisers are at the customers’ disposal, offering free training, valuable advice on new trends and techniques, ideas and solutions that will give added value to their business.

Training

We wish the continuous development of our customers and to this end we have created two fully equipped training rooms, in Keratsini and in Sourpi, were baking seminars are delivered. The objective of the seminars is for our customers to acquire specialised knowledge with respect to baking techniques, become acquainted with new flours and learn new recipes.

Tailor Made Products

For us at Loulis Mills, it is a challenge to produce particular recipes in order to meet the most specialised needs of some of our customers and, to this end, we develop tailor made products, based on specific requirements and needs of our customers.Our experienced technical advisers work together with the R&D department and our customers, to create specific recipes that will give their production a comparative advantage.

24

Financial Figures 2014

Stakeholders

Loulis Mills’ dominance in its sector is timeless and this is reflected in its turnover. Loulis Mills’ turnover in financial year 2014 amounted to € 88 million compared to € 94 million in 2013, marking a decline of € 6 million. This decline was a result of the prices of cereals being generally lower in 2014 compared to 2013. The sales volume increased in 2014 compared to 2013, from 220,000 tons to 222,000.

Loulis Mills identifies as its key stakeholders all those individuals and/or bodies that have a direct impact or effect on its long-term, sustainable success, such as its employees, customers, consumers and suppliers, the

Moreover, we managed not only to preserve, but also in many cases to increase our market share. The company’s net profit before tax in 2014 rose to € 3.7 million.

For further information: http://www.loulismills.gr/gr/investor-relations/financialstatements/

local communities in which it operates and the media. A key concern of the company is the continuous and intensive communication with our stakeholders, aiming at mutual trust and excellent cooperation. Communication and dialogue with each of our identified stakeholders is for us of particular importance in order to also identify their needs and expectations, which are essential for the company’s operation. In this effort, at Loulis Mills, we invest with consistency, discovering new channels of communication with all our stakeholders.

ANNUAL SALES 2014

ANNUAL SALES 2013

222.000tons

220.000tons

STAKEHOLDERS MAP

LOULIS MILLS

Local Communities

Customers

Media Suppliers

ConsumersEmployees


25

STAKEHOLDERSKEY REQUIREMENTS

FORM OF COMMUNICATION

COMMUNICATION FREQUENCYDESCRIPTION

228 Employees

4.000 Bakers

135 Food Industries/Small Businesses

3.500 consumer product points of sale

160 by products costumers

Volos, Keratsini

The company cooperates with 1890 suppliers in Greece and 40 suppliers abroad.

The company has open communication channels with many media at local and national level.

All those who enjoy the products of Loulis Mills

Employees wish to work in a safe environment, be remunerated with a competitive salary and have opportunities for development within the company. Moreover, they wish to be informed of the company’s CSR activities, in order to participate whenever it is possible. Customers wish to have an excellent cooperation with the company in all areas and source quality products conforming with approved standards

Local communities are interested in the company’s actions in matters of common concern, such as the protection of the environment, actions of social solidarity and provision of jobs.

Suppliers wish to have an excellent cooperation with the company in all fields.

The media wish to be informed of the company’s CSR activities.

Consumers wish to always purchase quality products and to be informed of the company’s CSR activities, in order to participate whenever it is possible.

Internal intranet

HR Department

Employee Research

Open dialogue and events

Newsletter

Customer researches Technical support adviser visits

Sales representative visits

Participation in industry exhibitions

Newsletter

Meetings with local bodies

Newsletter

Meetings with suppliers

Procurement department

Newsletter

Meetings with media representatives

Newsletter

Public Relations & Press department

Event Organisation

Visits to the Museum

Market researches

Information leaflets

Daily

Daily

Annually

Daily

Semi-annually

Annually

Periodically

Weekly

Periodically

Semi-annually

Periodically, according to demands

Semi-annually

Annually

Periodically

Semi-annually

Annually

Semi-annually

Periodically

Periodically

Daily

Periodically

Periodically

empl

oyee

scu

stom

ers

loca

lco

mm

unity

supp

liers

cons

u-

mer

sm

edia


26

MEMBERS OF THE BOARD OF DIRECTORS

Mr. Nikolaos Loulisson of Konstantinos

CHAIRMAN OF THE B.O.D.

EXECUTIVE DIRECTOR

Mr. Nikolaos Fotopoulosson of Spyridon

VICE-CHAIRMAN OF THE B.O.D. AND MANAGING DIRECTOR

EXECUTIVE DIRECTOR

Mr. Konstantinos Dimopoulosson of Nikolaos

MEMBER OF THE B.O.D.

EXECUTIVE DIRECTOR

Mr. George Mourelatosson of Apostolos


INDEPENDENT NON-EXECUTIVE DIRECTOR

Mr. Christos Tsitsigiannisson of Georgios


INDEPENDENT NON-EXECUTIVE DIRECTOR

Khadim Al Darei


EXECUTIVE DIRECTOR

Corporate Governance

Organisation Chart

At Loulis Mills S.A., we are committed to operating in an effective and transparent manner. This is the purpose of the company’s organisational structure, which provides for clear roles, areas of responsibility and objectives for each Division.

Loulis Mills S.A. is committed to and maintains high corporate governance standards. In this context, the Company has implemented the principles laid down by the Corporate Governance Code that has been established by the Hellenic Corporate Governance Council (HCGC), with certain amendments based on our company’s specific needs, but always in accordance with the applicable legislation.

CHAIRMAN OFTHE BOARD

VICE-CHAIRMANOF THE BOARD& MANAGING

DIRECTORINTERNAL

AUDIT

LEGALDEPT

PUBLIC RELATIONS

QUALITYASSURANCE

HUMANRESOURCES

SECRETARIAT

SOURPIPRODUCTION

DIVISION

PURCHASING & HANDLING

DIVISION

KERATSINI PRODUCTION

DIVISION

COMMERCIAL SALES DIVISION

CONSUMER / MARKETING

DIVISION

IERA ODOS WAREHOUSE

CORPORATE SOCIAL

RESPONSIBILITY DIVISION

FINANCE DIVISION


27

Participate activelyAs an active member of the Greek business community as well as of the Greek food industry, Loulis Mills participates in the following bodies and associations:

Greek Flour Millers AssociationThe main objective of the Greek Flour Millers Association is to safeguard the rights of the Greek flour millers, to allow them to be competitive and innovative, while promoting their responsibility for the safety of food quality, nutrition and health.

Association of Greek Food Industries (SEVT)SEVT’s mission is to develop and maintain an environment that is favourable for the sector and attractive to investments, in which all food and drink companies can develop and respond to the contemporary needs of consumers and society, while, at the same time, competing effectively with a view to achieving sustainable and inclusive growth in Europe.

Association of Industries in Thessaly and in Central Greece (AITCG - SBTKE). The primary objectives set by the association are to defend the economic, moral and professional interests of the members and to promote studies and scientific research in order to assist and support the industrial development of Thessaly.

Union of Listed Companies (ENEISET)ENEISET’s mission is to elaborate positions, by means of systematic communication of its members, on issues pertaining to their participation in the Athens Stock Exchange (ASE/ATHEX) and the Capital Market in general, and to formulate proposals for the Athens Stock Exchange, the Hellenic Capital Market Commission and other competent Authorities and bodies.

Hellenic Management Association (EEDE)EEDE’s mission is the dissemination, development and promotion of modern management principles, methods and techniques.

Foundation for Economic & Industrial Research (IOBE)The purpose of IOBE is to promote scientific research on current and emerging problems of the Greek economy and to provide impartial information and formulate proposals that can be beneficial in policy making.

CEO CLUBThe Managing Director of Loulis Mills, Mr. Nikos Loulis, is a member of the CEO CLUB, the primary purpose of which is to provide inspiration and training to business leaders.

The Magnesia Chamber of Commerce and Industry Operates and develops actions within the framework of its governing legislation as a Greek Public Body, as well as on the basis of the legislation on «Chambers of Commerce».


28

Identification ofMaterial Aspects (MATERIALITY ASSESSMENT)

One of the most important and fundamental guiding principles in the GRI is the concept of Materiality. An organisation should report on the issues (aspects) that cause the most significant economic, environmental and social impacts or on those that are considered most important by its internal and external stakeholders. Our assessment lays the emphasis on the environmental and social aspects that are of primary importance for our stakeholders and our company, and which are set out below.

View of Loulis Mills Management

Stak

ehol

ders

LOW

LOW

HIGHMEDIUM

MED

IUM

Political contributions

Marketing Non-competitive

behaviourEnvironmental legislation

Local communities

EmploymentProcurement Practices

Market Presence

Product Labelling

CO2

Suppliers

TransportsBiodiversity

Water

Investments

Energy

Corruption

Human RightsChild

Labour

Waste

HIG

H

Raw Materials

Education

Indirect Financial ImpactSuppliers – labour practices

Health and Safety of Consumers

Health and Safety of Workers

Labour Relations

Financial Performance

Equal Opportunities

Suppliers – social contribution


29

More specifically, in order to identify the material aspects for Loulis Mills, we conducted a survey of stakeholder views, based on the principles of Relevance, Materiality and Prioritisation, which analysed input from both external and internal sources of the company. This process comprised:

Step 1: Identification and understanding of material aspects with our stakeholders. The identification of material aspects for Loulis Mills was determined by a survey which was conducted in the form of focus groups on employees, suppliers, customers and opinion leaders.

Step 2: Identification and understanding of material aspects of corporate strategy for Loulis Mills through internal processes with the participation of the company’s Management.

Step 3: Linking the results on a chart (Materiality Matrix) and assessment of each aspect on the basis of its overall social, environmental and economic impact. Each aspect was prioritised by a degree of materiality according to its relevance for the stakeholders and Loulis Mills. GRI recommends plotting materiality issues on a matrix chart, with the X-axis representing aspects that cause significant impact to the company, and the Y-axis representing aspects that are influential amongst stakeholders. Aspects that fall within the range 8-10 of the chart are deemed to be the most material, as seen in the chart on the left page.

Step 4: We have included in the report all the aspects with the highest materiality. The issues with the lowest materiality are only referred to if they are influenced by or depend on the aspects with the greatest materiality.

Following completion of the above steps, the aspects that are deemed as material issues with a high impact for both the stakeholders and Loulis Mills are as follows:

• Financial Performance• Market Presence• Procurement practices• Environmental Legislation• Investments• Employment• Management–Employee Relations • Employee Health and Safety• Employee Training and Further Education • Local Communities• Consumer Health and Safety• Product Labelling


About the Report

Objective

The aim of the Corporate Responsibility Report is to fully and thoroughly inform our stakeholders.

Scope and reporting period

This report is the first attempt of Loulis Mills S.A. to chart the strategy and the annual activities of our Company in matters of Corporate Social Responsibility (reporting period 1.1.2014 - 31.12.2014). The Report illustrates our commitments to the principles and strategy of Corporate Social Responsibility (CSR).

Implementation of the Global Reporting Initiative (GRI)

This first Corporate Social Responsibility Report of Loulis Mills is based on the guidelines of the Global Reporting Initiative (GRI) and, more specifically, on their new, G4 version (In Accordance – Core), the most acknowledged and demanding guidelines of their kind, globally.

Communication about the report For any clarifications on the Corporate Responsibility Report for the year 2014, please contact: Ms Olga Manou tel: 210 40 90 100 email: [email protected]

Human resources

33new Recruitments

Medical examinations for all employees free of charge

Zero work-related accidents

437 hours of employee training

67%of the employees come from the local communities where the company operates

Our people are the heart of the company

67%

33

Our people are the principal factor in the company’s success story.At Loulis Mills, we function as a big family, where it is often the case to find second and third generation employees.

We try to ensure that each of our employees feels part of a whole with a common objective, which is governed by team spirit and constantly promotes the sense of co-operation. For this purpose, particular emphasis is being placed on the respect for one another, on mutual trust and on the uniqueness of every employee.

We invest in the development and training of our employees, we ensure that the Health and Safety Rules are strictly observed and we provide for excellent employment and working conditions. Meanwhile, we constantly strive so that our people can feel proud for our company.


34

Recruitments

Graph:Age-groups of Loulis Mills’ new recruits in 2014

Despite the financial crisis, in 2014 at Loulis Mills we proceeded to 33 new recruitments: 22 at the facility in Volos and 11 in Keratsini. 69.7% of the persons recruited are men and 30.3% are women. The average age of the persons recruited in 2014 is 34 years. The following diagram presents in detail the age groups of the persons recruited for the reported period.

18-25

9

67

11

26-35 36-45 >46


The company is particularly interested in the support and development of the local community, listening to any problems that may exist and trying to provide solutions. Moreover, it wishes to have in its workforce employees, who, apart from the necessary skills and qualifications, will be able to balance their work requirements with their personal, family and social needs. For the above reasons, it has opted to give priority and recruit employees from the local community. In 2014, the percentage of directors from the local communities where Loulis Mills operates reached 67%.

35

Employee benefits At Loulis Mills, we acknowledge and appreciate the valuable contribution of our people to the company’s development and to maintaining our good name for more than two centuries. We ensure that we offer competitive remunerations, aiming at attracting talented individuals, and that we provide for a decent standard of living for all our employees.

At the same time, we pursue a benefits policy, which effectively supports our employees and their families. We stand by them at all times, offering help, safety and security.

Since 2013, the company has started to offer medical examinations free of charge to all her employees, in all facilities. Moreover, to some of the employees, mainly senior and sales department employees, it also provides accident insurance in order to facilitate their everyday life.

In addition, for easier access of the employees working in the industrial area of Sourpi, the company provides transport by company coach.

«As far as I remember myself, since I was a kid, I was always holding a cigarette in my hand (outside the workplace, of course). I started smoking as a teenager, from the age of 15. I had never been to a doctor.... …until the new Occupational Health Physician visited the mill. The doctor was inviting all the employees to the surgery to get to know us and she was interviewing us about our medical history. She encouraged us to take part in the preventive medical check-ups that the company was to offer to the employees for free. The examinations comprised a spyrometry test, a hearing test and a blood test, and she explained us the reasons why we should take these tests. I was impressed by the fact that in a period that was quite difficult for workers in Greece, due to the financial crisis, specifically in 2012, Loulis Mills was breaking new ground and was offering these tests to the employees.This is how I found out that I was suffering from a serious case of Chronic obstructive pulmonary disease (COPD).

The future of my health was uncertain and my condition was deteriorating. Both the respiratory specialist who saw me and the occupational health physician of my company, advised me to immediately quit smoking, and recommended medication, medical supervision and special nutrition for weight loss. In February 2015, three years after the first check-up, I have given up smoking, I take my medication, I am under medical supervision, my quality of life has improved, I feel better about myself and, all that… I owe it to my second family. Because, this is how I feel about your company: my second home! Because, if it wasn’t for the encouragement on the part of the company, through the occupational health physician, I might have not been able to stay ahead of the unfavourable developments in my health.I owe a big ‘thank you’ to Loulis Mills... …I hope and wish that it will continue to provide the preventive medical check-ups to employees, in these times of finacial hardship that we are going through.

Konstantinos GkatziasEmployee at the mill in Sourpi


36

MedicalCareIn the context of our company’s effort to support its employees in these times of financial and social hardship, in 2013 we decided, in addition to the monthly visits of the occupational health physician in both Keratsini and Sourpi, to offer our employees the opportunity to take optional free preventive check-ups. Therefore, each employee is entitled to a free annual blood test at one of our cooperating diagnostic labs.

In order to better facilitate our personnel, the medical examinations were performed in three cooperating diagnostic centres:

• VIOANALYSIS KITILI S.A. in Volos• Dr. Evangelos Govaris’ surgery in Almyros• MEDICAL DIAGNOSIS LTD in Keratsini.

As our intention is to enable all our employees to take the tests, the employees who work in other areas and didn’t have access to the diagnostic centres mentioned above, were examined in other diagnostic centres.

The duration of the medical tests was approximately 2 months for each of the two years, respectively, in order to accommodate as many employees as possible. The result was a positive response from the majority of our personnel, who took the medical tests in 2013 and 2014.

Our company intends to establish the repetition of the medical tests also in the years to come, within the framework of the social and financial support of its employees. The above action had a cost for the company which rose to € 12,500 for both years.


37

Employee health and safety Work-hours lost

At Loulis Mills, we believe that no other element of our business activity could be more important than the people who are contributing with their daily work to the culture and the business performance of our company. For this reason, we devote all the necessary energy and attention to the protection of our employees, as well as of all those who are engaged in the value chain of our company.

The company’s goal is zero work-related accidents and zero number of calendar days of absence from work due to a work-related accident, and, for 2014, we achieved our goal, as there haven’t been any incidents of serious injuries caused by accident or disease, but only common illnesses in a small number of employees. Work-hours lost due to common illnesses are shown in detail in the following diagram.

For 2014, 100% of our employees returned to their work from their maternity leaves.

ILLNESS

MEN

ΑTHENS

MATERNITY

WOMEN

VOLOS - SOURPI

1.671

2.066

1.615 1.896

1.840

1.445


38

Improvement of the Working Environment

Management - Employee Relations

Loulis Mills, always consistent with the goal it has set over many years, for improvement of the working conditions, decided to proceed to the gradual elimination of 50-kilogram sacks and, now, from 2014, professionalproducts are available in 25-kilogram sacks.

At Loulis Mills, we function as a big family. Open and truthful communication between the company and the employees helps us ensure a climate of mutual trust and understanding. We operate in accordance with an open door policy and all employees can communicate directly with the company’s management at any time, in order to resolve any occupational as well as any other type of problems.

As a result, both the employees of Loulis Mills, in packaging and in the warehouses, as well those who work in distribution, in sweetshops and in bakeries will have to handle lower weights, thus facilitating their work and with lower injury risks. By doing this, we wish to protect all our associates from any adverse effects on their health.

At the company, we believe that internal communication has many significant impacts on the relations and the philosophy of the company, as well as on the stances, the viewpoints and the interaction of the employees.

The contracts signed with all our company’s employees do not stipulate any change in their terms and conditions and contain no reference of any predetermined notice period for changes.

LOULISMILLS

one big family


39

Employee Development and TrainingAt Loulis Mills, the development and training of our most important stakeholder, our employees, is a top priority for us. Our objective is both the personal development of our employees and the development of their skills, in order to provide excellent and high quality products to our customers and consumers.

The total number of personnel training hours for 2014 was 437 hours. The average number of training hours per employee was 2,0 hours. The following diagram shows a breakdown of the average training hours per gender.

In 2014, in investing in the continuous development of the employees, we organised a multitude of training programmes for our personnel. Specifically, the training courses were on the following subjects:

• One-day conference on informing and raising the awareness of (senior) employees on the CSR issues • Long-term English language workshops in Keratsini and Volos• Two-day CSR seminar• Salesperson seminars• First-Aid workshops• Environmental impact management using the ISO 14001 standard and the environmental legislation in force• Finance• International Trade Terms and Procedures • Food Safety and Quality• Product Trainings• Museology Seminar

Average number of training hours per employee

1,68

4,38



41

CorporateEventsThroughout the year, Loulis Mills’ management organises events for all its employees with a view to informing them and developing the relations between them as well as with the senior management. Some of the events organised in 2014 are presented below:

Pie-cuttingIn January 2014, the well-established New-Year pie-cutting party was held. The employees had the opportunity to get all together and exchange wishes for the New Year.

Sales Meeting and Excursion to KarpenisiIn March 2014, a seminar and an excursion of the sales team to Karpenisi were organised. In addition to its educational character, the event included a rafting trip, a football game and entertainment.

Visit and guided tour at the MuseumIn October, our company’s employees received a guided tour of the Museum and were informed of the exhibits and the unique collection of seals for religious bread offerings (propshora). The visit was followed by a lunch.

The Loulis Mills team sets foot on the top of the OlympusOn 27/07/2014, after an all-day climb, Loulis Mills’ expedition set foot on the 2,918-metre high ‘Mytikas’ peak of Mount Olympus. The climb is dedicated to all Loulis Mills’ employees who are working daily to make us the top flour-milling company in Greece, offering the highest quality flours. The team: Manolis Apostolakis, Apostolis Georgiou, Nikos Kritikos, Nikos Loulis, Kostas Boukouvalas, Kostas Dimeris, Grigoris Papadopoulos, Vangelis Telegkas, Stathis Telegkas, Andreas Tzifopoulos.

Meals with the employees Believing in the value of human relations, the company invests in them, shifting the focus on humans. In this context, also in 2014, we organised many meals with the employees, during which we had the opportunity to get all together and have fun away from work and from any professional engagements. At the beginning of June, the get-together for the Keratsini employees was organised at the Flisvos Marina, while, for the Maintenance and Sourpi Port employees, it was organised at the waterfront of Volos. They were followed,

on 29 June and 21 September respectively, by the departments of Quality Control, Wheat Silo and Blending as well by the Bag-Packaging department, who had lunch at a taverna in Volos, while the employees of the Volos Offices had lunch on 30 November 2014.

Christmas CelebrationOn Saturday 29/11/2014, a Christmas party was organised for the children of the employees at the Keratsini facility. The children prepared snacks and adornments with which they decorated the company’s Christmas tree. In addition, the children had the opportunity to receive a guided tour of the Museum and the mill. The party took place in a warm, family atmosphere, in which the Loulis family met with parents and children and they exchanged wishes for Christmas and the New Year.


Community

Significant involvement in grants and donations and support to 106 bodies, foundations and NGOs

More than 10,000 visitors, most of them pupils from 17 different regions across Greece, visited the Loulis Museum till today

Our Company has been an active member of the community over time We always remain a responsible and active member of our community

43

Throughout the centuries and over the years, Loulis family’s philosophy has always been to support and aid the community, of which it still is an active part, anyway.

The beginning of Loulis family’s social responsibility can be traced back to 1863, when Ioannis Loulis donated the money for the construction, over the Arachthos River, of the Plaka Bridge, a major project of the time, connecting Ioannina with Arta.

Unfortunately, on the day of its inauguration, the bridge collapsed and Loulis financed its construction from the beginning, which

was completed in 1866, by the builder Kostas Bekas. This was the largest single-arch bridge in the Balkans and its importance was crucial for transport and commerce in Epirus.

Since then, over the years, many members of the Loulis family have contributed, each according the needs of their time, to carrying out projects, to comforting human pain and to making great ideas prevail.

Today, we carry on, with the same philosophy, having social responsibility as our priority and following the needs of our time, we stand next to many «social groceries»,

«charity institutions» and other organisations of the Church, charities and other humanist institutions and foundations, which we support over time. Moreover, we have created a model bread-museum, with exhibits related to the ‘wheat-flour-bread’ chain, an essential part of which is the unique collection of 500 seals for religious bread offerings (propshora), the largest of its kind.

This museum is open to the schools that visit the mill. This way, we want to stress, particularly to children, the importance of bread in the social and religious life of the Greeks throughout the years.


Loulis Museum,‘From Wheat to Bread’Loulis Mills is a family-owned and Greek enterprise, with a tradition of 230 years of presence in the Greek economy but also with continuous social activity, which goes on unceasingly until today, with our Museum.

For more than a century, Loulis family has been lovingly collecting objects related to the ‘wheat-flour-bread’ chain. The need to bring all these together in one space, to be brought to the fore, and to be offered to our public, has led us to create the museum.

Its implementation was completed in 2012, in the Agiou Georgiou Mills building, in Keratsini. The vision of the Museum is on the one hand to preserve the history and the tradition accompanying the ‘wheat-flour-bread’ chain, and, on the other, to highlight the value of the Mediterranean diet for human beings. Implementation of the project started at the beginning of 2012 and the museum was inaugurated in November 2012. The construction cost amounted to € 457,000, while its annual operating cost is entirely covered by the company and amounts to € 60,000. The museum opened in January 2013 within the framework of the company’s corporate responsibility, and it is financially supported entirely by the company, while admission is free of charge for all.

www.loulismuseum.gr



Our museum is a thematic one and contains:

500 seals for religious bread offerings (propshora) covering a period of 17 centuries, from 14 countries, made of different materials and in various sizes and shapes. It is a comprehensive and very interesting collection

statuettes from the 7th century BC, representing kneading, grinding and baking bread

mill machinery and equipment from 1894

traditional folk-art tools and objects, documents, photographs and many other related items


The museum offers a variety of educational programmes and interactive/emotive events, adapted to the different age groups of children, for the optimal learning effect.

Moreover, it features a video hall/lecture theatre, where educational films are projected, a bakery, specifically organised for children, with a traditional oven, where the little guests participate interactively and knead and bake their own bread, as well as a break area.

The Museum is receiving free organised visits from schools as well as adults on a daily basis, and, in its 26 months of operation, it has received more than 10,000 visitors, most of them pupils from 17 different regions across Greece,

45 from Attica, as well as groups from 5 European countries.

Our Museum is also accessible by persons with disabilities, and it was with great pleasure that we welcomed and offered guided tours to the following:

• Special School of Korydallos• ‘PIKPA’ School of Piraeus• Logos & Nous’ Day Centre• Special Primary School For Deaf-Blind Students of Kallithea• ‘Margarita’ special workshop

In addition, free educational seminars and day-conferences are offered periodically in a specifically configured space, where traditional dough recipe preparation courses are also being delivered.

‘Congratulations!!! You make us feel proud to be Greeks. I wish that the other Greek industries will decide to follow your example as well, to save our tradition and culture and contribute to the development of our country! Your hospitality and the guided tour were both of high quality! Politeness, willingness, sensitivity towards our children with special difficulties. A stunning approach! You have our heartfelt thanks and we will visit again. Keep up the good work!’

The Principal of the Agia Paraskevi Special Needs Technical Vocational

Training Establishment for the Deaf & Hard of Hearing

M. Chaikali

«Your guided tour, an unprecedented experience, which commands admiration for your work».

Aimilia Litia Member of the Archaeological

Museum’s Friends’ Association

«Congratulations are not enough. Information, material, pupils’ participation, riddles, a short story on healthy eating, a guided tour...and all this and even more...with no ticket! Be well!! Keep up the good work!! Thank you very much».

S. BaimaAgios Dimitrios 2nd Primary School

Congratulations on the outstanding work you presented. A wonderful tour with useful information that left the children absolutely thrilled.

D114th Keratsini Primary School

«Congratulations for everything. For the space, for the guided tour, for the knowledge and the experience you have offered us! We thank you for what the children have experienced, learnt and enjoyed. Well done!»

Sofia OrfanoudakiAngeliki Manolopoulou

2nd Perama Primary School


48

OBJECTIVES OF THE MUSEUM

1. Informing the young generation of the great significance of bread in the Greek cultural tradition and in the Christian Orthodox religion.

With a view to sharing the memories of traditional techniques and practices, such as sowing, harvesting, grinding and kneading, we use the museum spaces to show documentaries, presenting the entire wheat cycle, as it used to be performed, in the traditional way. After watching the documentary, the children are invited to identify the traditional tools, through a discussion and an interactive game. The children then participate in an activity that includes kneading and baking bread in a traditional wood-fired oven and, as a result, our museum is filled by the smell of freshly baked bread. The programme is concluded with a guided tour at the most state of the art mill in Greece.

With the operation of our Museum, we wish to disseminate, particularly to the young generation, the traditions accompanying bread, which are inextricably tied to our national identity and tend to fade away as the years pass. In the mean time, we communicate the 10,000-year old history of cereals, their important role in the survival of the human being and the development of civilisation. To this end, we have

created and project a 27-minute documentary, which, by means of several different chapters, covers historically the entire course of the wheat, from prehistoric times to date, the involvement of bread in religion, the customs and traditions of the Greeks, as well as its processing process, in the past and today. All children leaving the Museum are given a book and a DVD with the history of bread, where we highlight the contribution of the Greeks to the evolution of bread over the centuries and to conquering a distinctive position in the history of gastronomy, as well as the importance of the role of bread in both the religious and everyday life of the Greeks.

2. Raising awareness in respect of the threat of the greenhouse effect and climate change, and of their impacts on human nutrition.

One more purpose of the Museum is to raise the children’s awareness of the risks for the environment and reinforce their environmental conscience. To this end, we have published a book on the negative impacts of the greenhouse effect on the quantity and quality of foodstuffs, as well as on how to address them. The book is provided free of charge to Lower and Upper Secondary School pupils visiting the Museum.

3. Informing the young generation of the nutritional value of bread, the importance of a balanced diet and combating childhood obesity.

As bread, cereals and the other flour products are an essential part of the Mediterranean diet, in the Museum we inform children of the value of the Mediterranean diet and of the need to adopt balanced and healthy dietary habits. According to the World Health Organisation, Greece holds the highest childhood obesity rates between OECD countries. It would therefore be a challenge for us to inform the children of this matter and to encourage them to adopt a healthier diet. To this end, we created a new, interactive educational module for children aged 5-8 years as regards the food chain and healthy eating, where, in an emotive manner, they learn about the food pyramid, the value of foods, as well as the distinction between beneficial and harmful foods.


SOME OF OUR ACTIVITIES

49

‘Mylonou’ at the Loulis Museum

Our Museum staged the play ‘Mylonou’ (Female miller) with great success on 3 and 10 October. The theatre group ‘Mikros Notos’ (Small South) welcomed our little friends at the historic Saint George Mills facility and, all together, they made their way between the exhibits of the space. With a theatrical game and live music, the traditional fairy tale about the quick-witted Mylonou from Naxos unravelled at the space of our Museum, making the best impression.

Μargarita

On 20/07/2014, a team from Margarita, a specialized vocational education and employment centre for people with mental disability, visited the Loulis Museum. Students and their trainers watched the program and the tour of the museum and plant facilities with great interest. They truly enjoyed kneading their own bread like professionals and actively participated in the entire process. The tour introduced them to the rich cultural life of our country and they marvelled at the beautiful museum exhibits. We thank them very much and wish them a great career.


50

Local Communities and initiativesFor our company, local communities are among the most important stakeholders. We have invested in the development of the local communities and we listen to their needs in order to be able to stand by them. During 2014, Loulis Mills proceeded to the implementation of initiatives adapted to the needs of the local communities in which we operate. Some of our initiatives are briefly summarised below.

Participation in university research programmes

The Agricultural University of Athens and the Aristotle University of Thessaloniki, within the framework of the programme ‘High performance grinding for the production of fine grain flours and bakery products with improved functional and nutritional characteristics’, cooperated with 3 private bodies, one of which was Loulis Mills.

The purpose of the programme was the application of the compressed air grinding technique to foodstuffs, offering the main advantages of obtaining small-sized particles with a small range of average grain size (granulometry).

Loulis Mills participated actively in the research with its know-how both with respect to the conventional grinding method and as regards compressed-air grinding. The research results are encouraging, as the flours produced using the compressed-air grinding method appear to have improved biofunctional properties.

Support to bodies and NGOs

Support to 106 bodies, of which 43 to Foundations & NGOs, 41 to the Church [Holy Metropolises (Dioceses), Holy Churches, Monasteries & Peace Homes for soup-kitchen events], 14 Baking & Confectionery Schools, 5 Municipalities and 3 Local Authorities.

Foundations& NGOs

Baking & Confectionery Schools

Churchbodies

Municipalities

Αuthorities

43

14

41

5

3


51

Support of the local community through the Church bodies & NGOs

Loulis Mills has always supported the humanitarian work of the Church and particularly of the Holy Metropolises of our communities. Let alone in the recent years, when our fellow humans have been facing huge difficulties.

To this end, we have supplied products to the 22 ‘Peace Homes’ in the Prefecture of Magnesia, where hundreds of local residents in need find shelter and food, and the institutes for the poor and the soup-kitchen centres of the Holy Metropolises of Nikaia and of Piraeus.

At the same time, we supported 19 more institute for the poor and soup-kitchen centers in respective Metropolises across Greece, 15 institutes in Magnesia, 8 institutes in Piraeus and the greater area and 20 Institutes and NGOs across Greece.

Donation to the Magnesia Police Directorate and to the Magnesia Fire Service

Our company receives donation requests on a daily basis, and we evaluate them and respond depending on their seriousness.

In September 2014, we received a request on the part of the Magnesia Police Directorate for the donation of a car with specific requirements, which the State wasn’t able to procure for them. The Magnesia Police Directorate urgently needed this car in order to continue fighting crime in the prefecture.

Having identified the materiality of the request, we proceeded to the purchase of a new and fully equipped 4WD Jeep-type police vehicle, which we delivered with great pleasure in a special handover ceremony that took place on 14 January 2015.

In addition, in March 2014, we donated to the Magnesia Police Directorate and, specifically, to the Motorway Traffic Police Department, 1,800 litres of petrol, for use by their official vehicles, thus contributing to the smoother operation of the department.

Moreover, we donated car tyres to the Magnesia Fire Service to replace the worn tyres of the area’s fire-fighting vehicles.


Within the framework of our effort to provide better and reliable raw materials to the laboratory courses of the baking and confectionery schools, throughout 2014 we offered more than 17 tons of flour.

The benefits of this successful cooperation with several schools from across Greece (Athens, Thessaloniki, Volos, Ioannina, Sparti) have become apparent at multiple levels and the students have the opportunity to learn the different types of flour, thus contributing to their educational work, which very important.

On the side of those suffering from celiac disease

Standing by consumers with specific needs, our company has, for years, been offering gluten-free flours in the market, which guarantee a successful and tasteful result, while being absolutely safe for those suffering from celiac disease.

Social Mini Markets

Our company feels the need to primarily support the sensitive social groups of our community. Hence, we have committed to supplying the ‘social mini markets’ of our area throughout the year and we provide:

At the same time and on an occasional basis, we provided support to the ‘social mini markets’ of the Municipality of Athens, of the Municipality of Egaleo and of the Municipality of Kymi-Aliveri.

Support to schools for educational needs

Our company stands by the students of baking and confectionery schools supporting their laboratory courses.

52

Also, various booklets with gluten free recipes, are available to consumers upon request, as well as many delicious gluten free recipes can be found on our freshly renewed website www.alevri.com Hence, it was a great pleasure for us to participate in the Celiac Disease Conference which was held in Alexandroupoli on 5 October 2013 as well as in Crete on 18 and 19 October 2013 by Coeliac Greece. The purpose of these events was to inform sufferers, doctors and professionals, as well as to exchange views on celiac disease. Our company provided the flour and information leaflets, as well as cookbooks, especially for the occasion.

Moreover, in 2014, our company proceeded to finance the publication of a cookbook specifically about gluten-free flour, to better serve those suffering from the disease.

500 kgper

month

400 kgper

month

150 kgper

month

Social mini markets of the Municipality of Volos

Social mini marketsof the Municipality of Keratsini-Drapetsona

Social mini markets of the UNESCO Group of Piraeus and Islands


2014we offered more than 17 tons of flour to baking and confectionery schools

53

Prize award by ‘Together for Children’

For the 4th consecutive year, the ‘Together for Children’ Association awarded prizes to those who voluntarily contribute to the community and support the work of the Association. Our company received an award for the unstinting support it provides to the work of the Association.

The ceremony was held at the Old Parliament House in Athens and was presented by reporter Ms. Sia Kosioni.

Other Awards and Participation in events

During 2014, Loulis Mills S.A. also received awards for its social work and contribution to the community by the following bodies:- Municipality of Keratsini-Drapetsona- Municipality of Agia Paraskevi- Merimna- Food Quality Award by LE MONDE Institute of Hotel & Tourism Studies Group- Vocational Education & Training Centre (KETEK) of the Manpower Employment Organization (OAED) of Oraiokastro

In 2014, the company participated in the following Corporate Social Responsibility related events, which are of direct concern to it: - European Business Awards- Sustainable Greece 2020 open dialogue- 4th Annual Corporate Social Responsibility Conference - Presentation at the 16th annual meeting that was organised by the General Directorate of Contemporary Culture at the ICOM premises on ‘Intangible Cultural Heritage; The Nutrition Culture’.


Environment

Voluntary installation of Sound Silencers, for reducing the noise levels at the mill, with an overall cost of € 55,000

Installation of recycling bins in all works, office and warehouse spaces

Zero waste of any form due to recycling

Reduction of energy consumption and of polluting emissions. The new industrial facility in Keratsini consumes approximately 10% less energy than the previous industrial plant

We do not inherit the environment from our ancestors; we borrow it from our children

55


Our raw material, wheat, comes from Mother Earth, which, as we have all realised, in recent years, is strongly impacted by the damage to the environment, which also affects the quality as well as the price of cereals. For this reason, we have been placing great emphasis on environmental friendliness for years, as we believe that «We do not inherit the environment from our ancestors; we borrow it from our children» and we have to deliver them a healthy environment, in which they will be able to cultivate and reap healthy foodstuffs.

We were among the first Mills in Greece, in the ‘70s, to apply dry wheat cleaning, thus achieving almost zero water consumption during grinding. Now, we have zero waste of any form whatsoever. For instance, even the paper which may be left from packaging materials is recycled.

We still, to this day, continue to place great emphasis on implementing environmentally friendly innovative practices, such as:

Vacuum-disinsectisation of selected cereals and flours, avoiding the use of chemical substances

Use of the thermal disinsectisation method in selected spaces of the mill, so that, instead of using chemical pesticides, we can use heat, which does not permit the development of insects in the production and storage spaces

Use of light tubes in our warehouses, thus avoiding the use of artificial light and energy consumption during the day

Cooperation with recycling companies

Continuous checks for pesticides or other substances both in cereals and in the finally produced flours

Creation of an organic mill by which we aspire to introduce organic flours coming from organically grown cereals, into the lives of Greek people

Publication of the book ‘We will be starved of bread!’, which we distributed free of charge, in order to raise consumers’ awareness as regards the impact of the damage to the environment upon our life and our nutrition

During the period analysed in this report, Loulis Mills has not received any fine or sanction for non-compliance with the Greek environmental legislation.

56


Installationof Sound Silencers

The Keratsini mill is in the same position since 1928, when it started operating in then isolated area of the Agios Georgios bay, in Keratsini. Since then, the area has been gradually inhabited and has evolved into a heavily populated municipality.

Being a company with strong environmental responsibility, Loulis Mills could not display anything but genuine concern about the quality of life of the houses nearby, which is a priority for us.

For this reason, our company is always close to the local community and responds immediately to its needs. When the head of the coordinating committee of the residents of Keratsini contacted us, in April 2014, in order to report the problem of noise caused by the operation of our plant, we responded immediately. We considered it our duty to proceed to all the necessary actions, for the purpose of minimising noise.

The process started in May 2014, when a relevant expert survey was carried out in the Keratsini Industrial Plant by a specialised certified company, member of the Hellenic Institute of Acoustics. The purpose of the survey was to investigate the sources of noise that was produced by the mechanical installations and to find possible ways of reducing them.

After multiple measurements, it was established that the highest noise values were coming from the fan terminals that are installed on the roof of the production building. More specifically, the noise values were reaching 98Dba.

In order to eliminate the problem and reduce the noise levels, we proceeded to the installation of three (3) large, five (5) medium and two (2) smaller sound silencers to the respective fan terminals at the top of the production building. Subsequently, we performed new measurements, which showed a significant reduction in the produced levels of noise, at 65-70 Dba.

The overall cost of the investment was € 55,000 and, since November 2014, we have been operating with the new reduced values of noise.

«In April 2014, I contacted Mr. Nikos Loulis and reported to him the problem of noise caused by the operation of the mill, which, at certain hours, disturbed the people living nearby.He assured me that they would examine all possible solutions and, indeed, in a very short time, and after appropriate actions on their part, the noise was eliminated.We very much appreciated their very sensitive attitude to this problem of ours, which contributed to the improvement in the quality of life in our neighbourhood.»

Spyros Kozaos, head of the coordinating committee of the

residents of Keratsini

57

Electricityand polluting emissions

With the full modernisation of the Keratsini industrial plant, which was completed in 2014, we managed to significantly reduce the consumption of electricity in our production process. More specifically, the new industrial facility in Keratsini consumes approximately 10% less energy

than the previous industrial plant. The electricity we use in our all facilities and at the offices of our company, comes from the grid of the Greek Public Power Corporation (PPC/DEΗ). The following table shows the electricity consumption data of the Sourpi Industrial Plant throughout 2014.

The measurement of the greenhouse gas emissions (CO2) for the operation of the company’s facilities for 2014 was carried out by the Centre for Sustainability and Excellence (CSE) in cooperation with the Swiss non-profit organisation myclimate.

mill

14.174.671

16.867,86

92,43%

15.334.872

18.248,49

100,00%

1.056.644

1257,4

6,89%

93.706

111,51

0,61%

9.851

11,72

0,06%

totalstoragewheat silosport2014 ENERGY CONSUMPTION IN KWH’S

CO2 EMISSIONS (TONS) CORRESPONDING TO ELECTRICITY CONSUMPTION

At the same time, in recent years, Loulis Mills has invested the amount of € 82,300 € in the following actions with a view to reducing energy consumption in our facilities:

Installation of light tubes on the roofs of the micro-packaging, maintenance and handling buildings; an investment of € 34,000. This resulted in significant reduction of the electric lighting operating time for the respective spaces, particularly at the hours of the day with sunshine.

Installation of roof fans in all office spaces and personnel communal areas; an investment of € 2,500, which resulted in a reduction of electricity consumption due to reduced air conditioning unit operating time.

Installation of solar films on the windows of office spaces and electrical boards; an investment of € 1.800, which resulted in a reduction of electricity consumption due to reduced air conditioning unit operating time.

Replacement of the handling department light fittings with new, LVD high performance and low consumption light fittings; an investment of € 25,000.


58

Replacement of high consumption perimeter floodlights (1,000 WATT each) with low power LVD light fittings (100 WATT); an investment of € 2,500. Replacement of high consumption light fittings (250 WATT each) at the entrance junction with low power LVD light fittings (100 WATT); an investment of € 3,500. Replacement of 22 KW production water-supply pump with new GRUNDFOS electronic control 3 KW pump; an investment of € 2,000. Replacement of 2.2 KW steam generator pump with new GRUNDFOS electronic control 2.2 KW (optimum performance) pump; an investment of € 2,000. Installation of air compressor management system; an investment of € 5,500€ aimed at the optimal use of the three 200 KW total power compressed air production compressors, and the respective reduction of electricity consumption due to «wasteful» air compressor operation. Installation of solar water heaters; an investment of € 3,500 for hot water in sanitary spaces.

Waste management

Optimal solid waste management is a material issue for the company. The use of best practices throughout the years of our operation has enabled us to have zero waste of any form in our production process.

Desiring to expand our waste reduction and proper waste management practice to all our company’s facilities, we decided to order and install special recycling bins in all our work places, namely in our production spaces, offices, warehouses and the Museum, in Volos, Sourpi and Keratsini.

This helps us reinforce the environmental conscience of the employees, while it facilitates the collection of recyclable waste.


Cooperationwith CHEPin pallethandling

CHEP is an international company dealing in pallet hire services in 46 countries and offers significant, environmentally friendly logistics solutions, which are beneficial for the protection of products and customers.

From the end of 2013, we use CHEP pallets for the production, storage and distribution of our products in the supply chain. In the last stage of the supply chain, the retailer or distributor receives our palleted consignments and, after they are emptied, CHEP provides for the collection and return of the pallets to its nearest service centre, where they are checked and repaired if necessary, in order to meet the necessary quality specifications, and then the equipment is reallocated ready for use.

This service is fully accepted by our customers, offering them better provision of service.

59

CHEP’s network coverage allows for shorter consignment distances. This means reduced CO2 emissions. Moreover, this also prevents any differences in the trial balances between Logistics and customers. Finally, pallet equipment management, the way it is conducted, effectively reduces waste, as all materials are recyclable. Hence, as Loulis Mills, we are contributing, through CHEP, to the following, at a global level:

1. Saving 22.5 million trees & 77,430 hectares of forests.

2. Ensuring the use of 1.4 million m3 recycled wood.

3. Reducing by 7.2 million tons CO2 emissions from transport.

4. Reducing by 5.9 million tons CO2 emissions released in the atmosphere.


Environmental protection - improvement projects

Loulis Mills is a company with particular sensitivity in terms of the environment, and, with the use of technology, we have set the objective of an environmentally friendly operation. In recent years, we have proceeded to the following practices and investments:Ανακύκλωση παλαιών σιδήρων,

Recycling old metals, used oils, packaging

plastic, paper from packaging materials, car tyres and batteries through certified bodies and waste-management companies

Use of biodegradable cleaning agents in the maintenance of production equipment

Use of automatic equipment “washing” system using water and not solvents in the maintenance department

Replacement of the wheat-cleaning department’s dedusting cyclones with dedusting filters; an investment of € 18,000 in combination with installation of high-tech wheat sorting equipment

Continuous renewal and development of afforestation in the surrounding area

Installation of modified atmosphere chambers with annual operating cost of € 35,000 for the

‘disinsectisation’ of sensitive products, without the use of chemical agents

Replacement of the wheat-cleaning department’s dedusting cyclones with dedusting filters; an investment of € 10,000

ISO 14001 Certification of the Environmental Management System

Keeping of all ‘Waste Producer’ records and relevant reporting to the competent public bodies.

Implementation of approved marine pollution prevention & control plan with use of relevant pollution prevention & control equipment (sea vessel, sea barriers, absorbent materials, collector container, spreading liquids and tools); an investment of € 40,000


Installation of dry-type transformers with an average voltage of 200 kVΑ instead of similar oil transformers, with additional financial cos to € 25,000 in total, with a view to protecting the environment from the transformer cooling-oil, and avoiding all possible risks of causing an environmental accident

Conduct of monthly seawater quality measurements; an investment of € 10,000per year

Conduct of monthly noise

and dust measurements by certified company

In whole, in the design and implementation of the facilities, provisions have been made for installation of dedusting filters everywhere, and for the air used in the process to be released back to the atmosphere free of dust.

Accordingly, all inert materials (rocks) that resulted from the excavations, were submitted to additional on-site processing and were used in the production of concrete, which was, in turn, used for the construction of the buildings of the facility


MarketResponsible products with respect for our customers and our suppliers

Zero incidents of non-compliance with health & safety-related regulations from product use and labelling

Significant investments in contract farming which strengthen local economy

Free provision of know-how to our customers by means of special baking seminars

63


Supply chain

Wheat Packagingmaterials

Sourpimill

Keratsinimill

Utilitymaterials

Ship Τrain Truck

Container Ships Trucks Silo trucks

The company has 3 privately owned distribution centres: in Iera Odos (Athens), in Kalochori (Thessaloniki) and in Podochori (Kavala), which, together with Sourpi and Keratsini, constitute an excellent distribution network.

With product outlets at every 200 km, and a full fleet of lorries, the company is able to meet the market’s needs timely and smoothly, and fulfil the orders of its customers, from Evros to Crete, swiftly and effectively.

Our distribution centres have all the required operating certificates (HACCP and ISO) and meet the strictest standards for the storage and handling of the products.

64


Procurement practices Contractual Agriculture Programme

Our company, with clear orientation towards the Greek market and the Greek producer, hired an agricultural scientist in September 2013, in order to set up its own contractual agriculture programme.

The programme started in 2013 and continued throughout 2014, with the cultivation of 3,000 hectares of durum wheat (from 50 producers). From these producers, we obtained approximately 500 tons of products and we continue.

In the period 2014-2015, the contractual agriculture production was increased by 20,000 hectares. 273 producers are now engaged in the scheme and the variety of products is wider, as, in addition to durum wheat, production now includes common, emmer and organic wheat, with a view to obtaining, by the end of 2015, approximately 8,000 tons of products.

The company’s intention is to continue the programme, expecting even larger production through contractual agriculture for the years to come, depending on the market’s needs.

The purpose of the programme is to reinforce Greek agricultural economy, on the one hand, and, on the other hand, to secure, for the needs of Loulis Mills, larger and larger quantities of Greek, high quality cereals. Through the programme, our company secures the money required for production, offers knowledge to the producers, with a view to improving the quality of the cereals, and ensures the provision of direct liquidity for cultivation expenses.

The annual cost of the contractual agriculture programme for 2014 was € 40,000.

20.000

8.000

273

hectares

tons

producers

65

Consumer Healthand SafetyThe hygiene and safety of flour, as well as of brans, was and still is a key objective for us.

With the term ‘hygiene’, we mean that we want our flours to come from the best varieties of cereals in terms of quality, so as to give us flour with the best quality- and nutritional characteristics. Apart from that, we have placed emphasis on creating products with added nutritional value for consumers, such as organic and products from emmer wheat. With the term ‘safety’, we mean that we always strive to produce

Equipped laboratoryquality control to ensure that we receive only the best grain in terms of quality, hygiene and safety

flours that are suitable for human consumption and are not detrimental to consumer’ health. This is a key objective for us, as with the damage caused to the environment in recent years, there are many cereals, which are unsuitable for the production of

flour for human consumption, as they contain high loads of toxins, pesticides or other substances detrimental to human health. With our finely equipped quality control laboratory, in combination with external analysis laboratories, we are able to ensure that we receive only the best cereals, in terms of quality, hygiene and safety. Of course, ‘hygiene and safety’ is not only limited to the raw material; it is part of our entire production process and only ends when the product has been delivered to our customer. Throughout the

production, storage and handling process, there are special machines which secure the safety of the foodstuff (magnets, sieves etc.).Finally, we have all the certifications and our personnel, guided by the quality assurance

department, takes active part, during production, in securing the hygiene and safety of the flours. We have been certified according to the following:

• The Global Standard for Food and Safety

• IFS Food

• ISO 2200:2005

• ISO 9000:2008

• HALAL

• KOSHER

During the year 2014, we had zero incidents of non-compliance with health & safety-related regulations from product use.


66

Food safety policy

The quality control process

Safety and quality of our products constitute a material issue for Loulis Mills. They are the foundations, upon which, we build our development and our success as a company. We want to be sure that each consumer can enjoy our products with absolute safety and certainty.

In order for cereals to be accepted and received, either from a ship or a lorry, it is a necessary condition to first take a sample, which is then thoroughly checked, in order to determine that it is of excellent quality, suitable for our production and for human consumption. Sampling and analyses are carried out throughout the acceptance and receipt process. We store our cereals according to their quality characteristics and then perform samplings and analyses, both during production and on the final product. Sampling is performed at each step of the production process, and if Quality Control approves the product, then

As the high and consistent quality of our flours is a key element of our philosophy, quality control constitutes a key part of our production process. We have one of the most advanced and modern quality control laboratories, not only in terms of the Greek standards, but also at global level. Our team of analysts is comprised of experienced food technicians as well as of bakers, who make sure that the final product is always of high quality.

it pass on to the next production stage. Finally, once a flour has been checked by our quality control department and before receiving the final approval that it is ready to be sold, it goes through our fully equipped experimental bakery for control.

Quality control ensures that the flour has the best quality characteristics, while they also conduct analyses to determine that the cereals are free of harmful toxins, pesticides or other detrimental micro-organisms. This is achieved by means of our special machines as well as through our cooperation with some of the best Greek accredited laboratories for analyses of this type.


Experimental bakeryThe experimental bakery, located inside the quality control area, is fully equipped with all the machines of a proper bakery. Hence, in our experimental bakery, we can probably produce whatever a baker would produce at their bakery, and that’s exactly what we do! Every day, all flours, before being forwarded to packaging and handling, pass from our experimental bakery, where our experienced baker kneads, moulds and bakes all the products. Apart from the scientific analysis of the flours, we also get every day a practical picture of a flour’s behaviour during kneading, resting and baking. Finally, we perform visual and sensory evaluation of the products. Therefore, a flour will be checked at least four times, before being put on the market. This is a key factor for our products having the high and consistent quality they are known for. Of course, quality control does not stop inside the mill; the technicians of the technical support department are daily visiting bakeries across Greece, to monitor the course of our products.


68

Product Labelling Responsible PackagingThe labelling of our products is of equal importance for us. We ensure that all our packaging indicates whatever is stipulated by Greek legislation. The indications required for all our products are easy to understand and are marked at a conspicuous place and in such manner that they are easily visible, clearly legible and indelible. All our packaging indicates: marketing name, list of ingredients, net quantity, date of minimum durability / consumption date, storage conditions and/or conditions of use, place of production or provenance, instructions for use, allergenic substances, batch code, traceability data (Bar Code) and detailed nutritional table.

During the year 2014, we have not received any complaint for non-compliance with regulations related to the labelling of our products.

In our effort to stand by our customers in every possible way, and always consistent with the goal we have set many years ago, for even better working conditions and for reduction of the factors that lead to ill health, we proceeded to the elimination of 50-kilogram sacks and to their gradual replacement by 25-kilogram sacks. As a result, both the employees of Loulis Mills, in

packaging and in the warehouses, as well those who work in distribution, in sweetshops and in bakeries will have to handle lower weights, thus facilitating their work and with lower injury risks. At the same time, we published an information leaflet, with instructions for the proper lifting of loads with safety, in order to avoid injuries, which we distributed to the market.


69

Developing new innovative products

In the context of the continuous development and improvement of our products, as well as in keeping up with the consumers’ trend for a balanced diet, our Company launched in 2014 the new stone-milled wholemeal flour from emmer wheat with the name ‘Ζην’ (Zin).

The raw material comes from Greek wheat cultivated specifically for our production. This wheat has a very old story and dates back to 12,000 B.C. It is very nutritional, it contributes to the proper development of the human body and is considered particularly digestible.


healthyliving

Baking seminars For many years we have been investing in the training of bakers and we created a fully equipped baking room at the Sourpi industrial plant, and has established the institution of baking seminars for our customers. In these seminars, bakers have the opportunity to benefit from the know-how of our experienced technical associates and to get information on new products and on their proper use, as well as enrich their portfolio of recipes, but also to get information on the new nutritional trends with respect to bread and pastries all over the world.

In 2014, four (4) baking seminars, on the subject of ‘Traditional sour dough breads and snacks with Zin flour’, offered to bakers from Larissa, Magnesia and Kiki’s, were successfully completed, and more have been scheduled for the coming months. The bakers had the opportunity to watch live the preparation of bread using ‘Zin’ flour from emmer wheat, which has certain particularities, but with the techniques and the advice offered by Louli Mills’ experienced advisers, their questions were solved and so they will have the best possible result.

Remaining true to our commitment to actively stand by our customers and consumers, we have already proceeded to the creation of a similar seminar space in Keratsini, to better serve the customers in Attica, Southern Greece and the Islands. This seminar room has been programmed to open in early 2015.

This is a movement aimed at improving the performance of bakers through our own know-how, so that our cooperation can provide added value to our customers.

«…..My first time at a mill. A day-trip fulfilled by the greatness of both people and facilities. Here, flour is being truly served. The baking room, a modern and homey lecture hall, worthy of the teacher, Mr. Sarantos. Inexhaustible and always willing, with a teacher’s care, as it should be. On the ground floor, the museum. A root in the root. The one that gives drive. I truly enjoyed it. I wish you all to be healthy, and strong, an to keep dreaming. To inspire us..... .»

Lefteris Charisakis, customer, bakery owner in Santorini.



72

Love to bake dayIn 2014, Loulis Mills started a new action, the ‘Love to Bake Day’, a day full of taste and flavour, dedicated to any woman who loves to create mouth-watering delicacies for her family. This is a well-established event, and, since May 2014, it has already been held 3 times, in Golden Hall and Athens Metro Mall, in Athens, and at the Grand Masoutis store, in Thermi, Thessaloniki. The company has scheduled to organise 4 Love to Bake Day events every year. More specifically, in each store, we set up the wonderful kitchen of Saint George Mills and we are ready to welcome children and grown-ups, who come to mould and cook with us! The objective of the event is to promote the Saint George Mills brand to the public, through the live creation and preparation of recipes, using products of the brand and with special guest Food Bloggers and Chefs. This way, the public has the opportunity to get acquainted with our products, learn how to use them and find answers to any questions they may have, as well as receive a free booklet with recipes. At the same time, in the specifically arranged space and under the guidance of the animators, the children are engaged in various creative activities, including baking, painting and construction games, while they are allowed to keep their creations as souvenirs, to remind them of this brilliant day! Love to Bake Day is an event that we enjoy with pleasure and has been enthusiastically received by the public.


73

Time for...Easter festive bread-decorationsIn view of the Easter celebration, the Association of Bakers of Thessaloniki ‘Prophetic Elias’, organised a seminar on the subject of ‘Easter festive bread-decorations’. The experienced technicians presented ideas and techniques for the garnishing of ‘tsoureki’ (brioche-like type of bread) and Easter eggs, and for decorating a festive shop-windows and packaging. A crowd of visitors watched with enjoyment and strong interest the experts’ creations and learned various secrets and techniques about decorating Easter snacks. The colourful Easter eggs and the delicious ‘tsoureki’-breads created a festive, Greek-Easter-like atmosphere at the show. Loulis Mills, always seeking to stand by professionals, couldn’t have missed such an event, sponsoring part of the show and offering publicity material about the company and its products.

Loulis Mills and Al Dahra Strategic AllianceIn 2013, we concluded our partnership agreement with the company AL DAHRA from the United Arab Emirates. This partnership secures our financial robustness on the one hand and offers us an important strategic partner on the other hand.

Our partnership with Al Dahra opens new horizons for us:

1. It directly links the company with primary grain production, which to a large extent ensures qualitative stability and the quantitative adequacy of raw materials.

2. It closely links the company with Arab countries that are known to have a large population increase and are predominantly flour importers.

3. It opens the way for penetrating the developing markets of Africa and Asia.

4. It lays strong financial foundations for further development.

At Loulis Mills, we have now laid sound foundations for further development by gaining access to developing markets and further consolidating our financial background.


74

Creation of Blood Bank Organisation of social responsibility week

Informing the employees of the CSR issues and of the company’s performance in these Zero accidents

Organising corporate events and reinforcing team spirit for the employees in Volos and Keratsini.

Increasing the average training time per employee

Systematisation of volunteering programmes with a view to increasing employee participation rate.

Creation of a volunteer group per plant with active action at local level.

Completion of Scorecard for monitoring CSR performance

Future goals

EMPLOYEES

Goal for 2015 Future goals

75


Supporting local community and socially vulnerable groups Expanding the Museum and enriching its training programme

Reduction of polluting emissions

Environmental leaflet

Recycling instructions on packaging

Foundation of the Greek School Bakery Operating in the ready - mix flour market through acquisition of Kenfood

Baker training - Increase the number of seminars Creation of Stakeholder Code of Conduct Creation of a new consumer product categories premix easy bake

Developing of new innovative consumer products from alternative cereals (oat - spelled)

Creation of environmental training programme at the museum and obtaining climate neutral certification

Maximisation of our contribution to our local communities Raising children’s awareness in matters of nutrition, the environment and food waste

Creation of scholarships for the young, for studies in Baking/Confectionery

Greater energy savings

Measurement of Product environmental footprint

Operation of Hellenic Baking School

Social message on packages and donations to social groceries

COMMUNITY

ENVIRONMENT

MARKET

Goal for 2015

Goal for 2015

Goal for 2015

Future goals

Future goals

Future goals

76

GRI Appendix

MATERIAL ASPECT BOUNDARIES AND LIMITATIONS (G4-20, G4-21)Material Aspects

Economic Performance

Market Presence Supplier Practices Environmental legislation compliance Investments Employment Management/ Employee Relations Employee health and safety Employee trainingand furthereducation Local Communities Consumer health and safety Product Labelling

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

Loulis Mills S.A.

-

Customers, Suppliers

Suppliers

Suppliers, Local Community

Local Community

-

-

-

-

Local Communities

Customers, Consumers

Customers, Consumers

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

BoundariesInternally InternallyExternally Externally

Limitations

GRI G4 COMPLIANCE LEVEL ASSURANCEThis is the first Corporate Responsibility Report of Loulis Mills, and covers the activities carried out during 2014. The Report covers all activities performed at our premises in Greece. The Centre for Sustainability and Excellence (CSE) assessed Loulis Mill’s 2014 Corporate Responsibility Report in accordance with the instructions of the GRI G4 and confirms that they are in compliance level “Core”.

77


GRI-G4 TABLE IN ACCORDANCE - CORE GENERAL STANDARD DISCLOSURES

G4-1

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

G4-11

G4-12

G4-13

G4-14

G4-15

G4-16

G4-17

G4-18

G4-19

G4-20

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

p. 6

p. 9

p. 21-23

p. 19

p. 21

p. 8-9

p. 21

p. 20-24

p. 37

p. 38

p. 63

There were no significant changes p. 12

p. 27

p. 27

p. 24

p. 28-29

p. 28-29

p. 76

Management Statement

Name of the organization

Primary brands, products and/or services

Location of organization’s headquarters

Countries where the organization operates

Ownership structure and legal form

Markets served

Scale of the organization

Workforce profile by employment type, gender,age group, mobility and other variation in

Employees covered by collective bargaining agreements

Organization’s supply chain

Significant organizational changes in the reporting period

Report whether and how the precautionary principle is addressed by the organization

List externally developed economic, environmental and social initiatives to which the organization subscribes or which it endorses

List associations (such as industry associations) and national or international advocacy organizations in which the organization participates

List all entities included in the organization’s consolidated financial statements or equivalent documents

Explain the process for defining the report content

List all the material Aspects identified in the process for defining report content

For each material Aspect, report whether the Aspect is material within the organization

Indicator Description ReferenceExternal

Assurance

Strategy and Analysis

Identified Material Aspects and Boundaries

Organizational Profile

78


G4-21

G4-22

G4-23

G4-24

G4-25

G4-26

G4-27

G4-28

G4-29

G4-30

G4-31

G4-32

G4-33

G4-34

G4-56

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

For each material Aspect, report whether the Aspect is material outside of the organization

Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements

Report significant changes from previous reporting periods in the Scope and Aspect Boundaries

List of stakeholders

Report the basis for identification and selection of stakeholders with whom to engage

Approach and concerns to stakeholder engagement

Key topics and concerns that have been raised through stakeholder engagement

Reporting period for information provided

Date of most recent previous report

Reporting cycle

Provide the contact point for questions regarding the report or its content.

Report the ‘in accordance’ option the organization has chosenReport the GRI Content Index for the chosen option Report the reference to the External Assurance Report, if the report has been externally assur

Report the organization’s policy and current practice with regard to seeking external assurance for the report

The governance structure

Statements on the mission or the values, the codes of conduct and principles developed internally andrelated to the environmental or social performance, as well as their stage of implement

Indicator Description ReferenceExternal

Assurance

Identified Material Aspects and Boundaries

Stakeholder Engagement

Governance

Ethics and Integrity

This is Loulis Mill’s Sustainability Report

p. 76



1.1.2014-31.12.2014

p. 24-25

p. 24-25

p. 25

p. 25

p. 30

p. 77-79

No external assurance

p. 12-14

p. 26

Annual

p. 24

p. 64

p. 55

p. 60-61

p. 35-36

p. 44-53

p. 38

p. 37

p. 39

p. 65

p. 68

79

IN ACCORDANCE - CORE SPECIFIC STANDARD DISCOSURES

Material Aspects

Category: Εconomy

External Assurance

Economic Performance

Procurement practices

Environmental legislation compliance Investments

Employment

Labor/ Management Relations Occupational Health and Safety

Training and Education

Local Communities

Customer health and safety Product Labelling

G4-EC1

G4-EC9

G4-EN29

G4-EN31 G4-LA2

G4-LA4

G4-LA6

G4-LA9

G4-SO1

G4-PR2 G4-PR4

Direct economic value generated

Proportion of spending on local suppliers at significant locations of operation Significant fines and non-monetary sanctions for non-compliance with environmental legislation

Total environmental protection expenditures

Benefits to full-time employees

Notice periods regarding changes in collective agreements Type of injury and rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities

Average hours of training

Local community impacts

Total number of incidents of non-compliance with regulations concerning the health and safety impacts of products

Total number of incidents of non-compliance with regulations concerning product labeling

-

-

-

-

-

-

-

-

-

-

-

-

Indicator Description Reference

Category: Environment

Category: Society


33 new recruitments and free medical tests to all employees

Support to 106 bodies, Non - governmental organisations and ‘social groceries’

10,000 visitors, most of them pupils from 17 different regions across Greece, have visited the Loulis Museum

Significant investments in contractual agriculture thus strengthening local economy

Zero waste of any formdue to recycling

106

Spetson 1 str., Keratsini - Greece 187 55 | T. +30 210 40 90 100, F. +30 210 40 90 150www.loulismills.gr | www.alevri.com | www.loulismuseum.gr

/alevri.com.gr /loulismills.gr /loulismuseum

Documents

Loulis Mills Sustainability Report 2014